Walmart is introducing its largest store-label food brand in two decades, offering a wide range of items. This move aims to attract younger customers who aren’t committed to specific grocery brands but crave chef-inspired cuisine at wallet-friendly prices.
The new brand, Bettergoods, is now available at Walmart stores and on the company’s online platform. Walmart announced on Tuesday its plans to expand the line to include 300 products by fall, spanning frozen foods, dairy items, snacks, beverages, pastas, soups, coffee, and chocolate. Prices vary from under $2 to under $15, with the majority of products priced below $5.
The Bettergoods line is categorized into three sections: plant-based selections like desserts crafted with oat milk and non-dairy cheeses; offerings tailored to various dietary preferences, such as gluten-free options or those free from artificial flavors, colors, or added sugars; and “culinary experiences,” which include delights such as creamy corn jalapeno chowder and authentic Italian pasta.
As inflation pushes shoppers to explore more budget-friendly options, the introduction by the nation’s leading retailer is timely. This trend has propelled the popularity of private-label brands, which constituted nearly 26% of total units sold in the food and beverage category last year, up from 24.7% the year before, as reported by market research firm Circana. In contrast, national name brands accounted for 74.5% of sales last year, down from 75.3% in 2022.
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In 2023, private brands captured 36.6% of the market share in dollars for core pantry items like breakfast meats, baking essentials, fresh bread, and savory snacks, marking a slight increase from 36.2% in 2019. In contrast, national brands held 63.4% of the market share last year, a slight decrease from 63.8%, according to Circana.
However, store brands are evolving to offer tastier and higher-quality options, comparable to national brands. Walmart’s competitors, such as Target, have been expanding and enhancing their own labels. Target’s Good & Gather food and beverage brand, introduced in 2019, has broadened its offerings to include dishes like chicken tikka masala.
Many grocery retailers are facing increased competition from Trader Joe’s, known for offering shoppers an adventurous treasure hunt experience with its diverse selection of high-quality meals, ingredients, and snacks.
Alongside Great Value and Equate, Bettergoods is another Walmart store label food brand offering more affordable options compared to national names. Bettergoods, on the other hand, claims that many of its products are made just for Walmart, introducing the retailer’s customers to new flavours and trends.
Scott Morris, Walmart’s Senior Vice President of Private Brands, Food, and Consumables, stated, “We’re observing a shift in younger customers towards brand neutrality, emphasizing quality and value, which is fueling greater interest in private brands within the industry.”
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